Gold producer Goldplat said on Friday it had signed a memorandum of understanding on a full and final settlement to resolve its payment dispute with Rand Refinery.

The companies agreed last year on an arbitration process for the recovery of fees owed to Goldplat Recovery by Rand Refinery.

“We are very pleased to have been able to progress discussions with Rand Refinery to this point and to have agreed terms for a settlement of the dispute,” Goldplat CEO Gerard Kisbey-Green said in a statement on Friday.

He said while the proposed amount was less than that claimed by Goldplat, the settlement would alleviate the time and costs of the agreed legal process and free up valuable management time.

“It also will allow business between the two parties to resume on the basis of a fresh start with renewed energy and focus in all areas to further strengthen and build the long standing relationship that exists between the two companies,” he added.

Goldplat runs recovery operations in South Africa and Ghana and an operational gold mine in Kenya.